WELL Health Technologies Corp T.WELL

Scotia Analysis

[SunsetGrill]

Poor poor Butt cox - where was all hIs DD when stock was $2.5 could have made 2.5X 

Record Q2 Results

OUR TAKE: Positive. WELL reported Q2 results that were in line on revenues at $170.9M (Street $170M), with adj. EBITDA ahead of consensus at $27.8M (Street $26.4M). Revenue was ahead of us in Patient Services and U.S. Patient Services, but below in SaaS & Tech. Services. Guidance for the year was maintained but is expected to be toward the upper half of the range of $740M to $760M (consensus is at $749M), expecting strong performance across all lines of business continuing into 2H. WELL maintained its view of achieving adj. EBITDA growth of at least 10% y/y. Importantly, the company announced it won a deal for its Ocean eReferral product with the province of B.C. (~$38.5M multi-year contract), which we should add to upside in revenue over the medium term. Shares look attractive trading at ~11.4x 2024 EEBITDA. Call is today at 1 PM ET (416-764-8650). Maintain Sector Outperform.

• Revenue of $170.9M was in line vs consensus at $170.0M and us at $170.7M. Patient Services revenue of $54.2M was better than the $51.8M we were expecting. U.S. Patient Services (CRH + Circle Medical + WISP) of $103.5M was ahead of our $101.8M. SaaS and Technology of $13.3M was below our $17.1M, though we note the latter tends to be lumpy and is tough to model (includes Cybersecurity, consulting etc.).

• Adj. EBITDA of $27.8M compared with our estimate of $27.5M (ahead of consensus at $26.4M), reflecting a margin of 16.3% vs. 18.8% in the prior-year period. Recall WELL is investing upfront this year in digital advertising initiatives in its U.S.-based Circle Medical and WISP businesses to drive customer growth.

• Guidance for 2023 was maintained but is expected to be toward the upper half of the $740M to $760M range; management expects strong performance to continue in 2H across all business units. Adj. EBITDA guidance was maintained (at least 10% y/y growth vs 2022 levels).

• WELL achieved a total of 1,015,000 patient visits in Q2, which was up 19% y/y (Canadian Patient Services visits up 12%, U.S. Patient Services visits up 27%). WELL exited Q2 with over 3,200 providers and clinicians representing more than 40% provider growth.
   

• Pertinent Data

Valuation: SOTP based on 2.5x 2024 EV/Sales for Virtual Services and 16.0x 2024 EV/EBITDA for CRH Medical, MyHealth, and Canadian Clinics shareholder EBITDA (implied 18.0x 2024 shareholder EBITDA).
Key Risks: Competition risk, contract risk, staffing risk, reimbursement risk, regulatory risk, integration/execution risk, security risk, liquidity risk.
Rating	Sector Outperform
1-Yr. Target	C$7.50
WELL-T	C$4.40
1-Yr. Return	70.5%
Div. (NTM)	C$0.00
Yield (Curr.)	0.0%
ESG Score	37
Quant Ranking	4

Capitalization
Market Cap. (M)	C$1,060
Net Debt + Pref. (M)	C$248
Enterprise Value (M)	C$1,263
Shares O/S (M)	241

[BudFoxx2020]

This post has been removed in accordance with Community Policy

[SunsetGrill]

LOL - From a guy whos been wrong on this stock for quite some time now (living n the past)  and has admittedly been out of all mkts since Jan/23 (now THAT'S embarASSing) missing NASDAQ'S near 50% gain. WOW. Speaking of impressing on any anonymous stock board. you seem to be fixating ALL your retirement days on many anonymous stock boards caring tremendously about a stock you dont even

[BudFoxx2020]

This post has been removed in accordance with Community Policy

[SunsetGrill]

Might have ??? Imaginary ??? $2.57 TO $6.00. I truly hope your Geriatric physician is not practicing in Canada, You are starting to exhibit all the classic signs of mental instability. Regardless of our differences I hope the best for you - just ask for help - at a WELL clinic if your near one.

[BudFoxx2020]

Poor scammer.  Lololololololol.  Picks the 52 weeks low and 52 weeks high.  Lolololololol.  Lying and scamming is in his blood.  Or maybe by imaginary like how you went and photoshopped and forged a whole WELL trading statement to try and impress an anonymous stock board.  Then I exposed it for all the editing errors.  Lololololool.  Dance scammer boy dance.

[SunsetGrill]

OK No problem pick $3.50 to $5.00 - hows that? Still amountS to missing out big time. Now correct me if im wrong but you boast (ad nausium) about being able to clearly spot these "trends". So mission out on well"s huge gain is one thing BUTT you got the whold NASDAQ and every world market wrong but admittedly going to the sidelines in Jan/23 now thats something one can never ever

[SunsetGrill]

Poor Poor Butt cox .  Lololololololol.  Picks the all time lowS and all time highS.  Lolololololol.  Lying and scamming is in his blood.  Or maybe by imaginary like how you went and post AFTER events and price targets happen over a VAST price range where one could never be wrong to try and impress an anonymous stock board.  Then I exposed him gor all the time he was